NEW YORK -Bion Environmental Technologies, Inc. (OTC Bulletin Board: BNET) announced today that, as a result of extended negotiations with the Pennsylvania Department of Environmental Protection (PA DEP), it has filed a demonstration project permit application with the PA DEP for Phase 1 of its Kreider Farms project.

Bion's management believes that the demonstration permit will enable Bion to proceed with the project as a 'design / build' project without further costly delays prior to receipt of the full Water Quality Management Permit from the DEP. The criteria for determining the success of the project under a demonstration project permit will be based on verification of the actual reductions of nitrogen across the system. When the Kreider Farms system has demonstrated these reductions, Bion will file for the full Water Quality Management Permit utilizing its verified data and the 'as built' engineering drawings.

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